Originally Posted by molof
Any 401(k) contributions need to be in by 12/31 to be considered for account for the current tax year. You could contribute $18,000+$5,500 in catch up contributions for the 2016 tax year.
To clarify, that's:
2016 Regular Contributions
2016 50+ Catch-up
2016 Total for 50+
The limits for 401(k)/403(b) and IRA are separate.
For traditional IRA, if you're covered by a workplace retirement plan and your income is greater than $70,000 (single) or $116,000 (married filing jointly), then your contributions are non-deductible.
Originally Posted by Marco
Can someone school me on setting up an IRA for tax savings? I do have a workplace program which I contributed $10k to in 2015. My income is just less than the $118k threshold, and I paid $15k in federal withholdings. Can I still open up an IRA before April 15th to save on my tax bill? I am 50+ so I could have participated in the catch-up. Could I contribute $8k so that I meet the $18k max for 401k's?
Unfortunately, you can't contribute to your 2015 401k anymore and given your income level contributing to a traditional IRA will likely not reduce your tax burden.
On the upside, with your $10k 401k contribution, you're probably eligible to contribute the full $6,500 limit to a Roth IRA up to April 15, 2016 for calendar year 2015 for future tax free growth.